Narrative Description
The first step in establishing the payable involves validating the vendor invoice. This process is triggered by receipt of the vendor invoice, a business document that notifies the purchaser of an obligation to pay the vendor for goods or services that were ordered by and shipped to the purchaser. The first process comprises a number of steps. First, the vendor invoice is compared against purchase order data (PO accounts payable notification) to make sure that (1) the purchase has been authorized and (2) invoiced quantities, prices, and terms conform to the purchase order agreement. Next, the invoice is matched against the receiving report data to determine that the goods or services actually have been received. Finally, the invoice is checked for accuracy of computed discounts, extensions, and total amount due. Note that the vendor master data is also updated at this point to reflect purchase history data. If the data items do not agree, the invoice is rejected (reject stub) and follow-up procedures are initiated.
If the data items agree, the validated invoice is sent on to the next step to be used to record the payable. The inventory master data and the AP master data are updated. The general ledger is also updated for the payable.
The first step in establishing the payable involves validating the vendor invoice. This process is triggered by receipt of the vendor invoice, a business document that notifies the purchaser of an obligation to pay the vendor for goods or services that were ordered by and shipped to the purchaser. The first process comprises a number of steps. First, the vendor invoice is compared against purchase order data (PO accounts payable notification) to make sure that (1) the purchase has been authorized and (2) invoiced quantities, prices, and terms conform to the purchase order agreement. Next, the invoice is matched against the receiving report data to determine that the goods or services actually have been received. Finally, the invoice is checked for accuracy of computed discounts, extensions, and total amount due. Note that the vendor master data is also updated at this point to reflect purchase history data. If the data items do not agree, the invoice is rejected (reject stub) and follow-up procedures are initiated.
If the data items agree, the validated invoice is sent on to the next step to be used to record the payable. The inventory master data and the AP master data are updated. The general ledger is also updated for the payable.
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